Legal Definitions - nullum arbitrium

Nullum arbitrium is a historical legal term that literally translates from Latin to "no decision."

Historically, this term referred to a specific defense used in court when one party attempted to enforce an arbitration agreement or a supposed arbitration outcome. If parties had agreed to resolve a dispute through arbitration, and one party later tried to compel the other to comply with an alleged arbitration award, the defending party could raise a "nullum arbitrium" plea. This plea asserted that no valid or final arbitration award had actually been made or delivered by the arbitrator, meaning there was "no decision" that could be legally enforced.

Here are some examples to illustrate this concept:

• Imagine a dispute between a homeowner and a construction company over a renovation project. They had agreed to resolve any disagreements through arbitration. After some proceedings, the homeowner believes the arbitrator issued a ruling in their favor regarding payment for alleged defects and attempts to sue the construction company to enforce this ruling. The construction company, however, could historically raise a nullum arbitrium defense, arguing that the arbitrator never formally concluded the process, signed a final award, or properly communicated a definitive decision. In this scenario, the company would be asserting that there was "no decision" from the arbitrator that could be legally binding or enforced.

• Consider two businesses, Alpha Corp and Beta Ltd., involved in a disagreement about a supply contract. They enter into arbitration as per their contract. Later, Alpha Corp files a lawsuit against Beta Ltd., claiming Beta failed to adhere to the arbitrator's binding decision. Beta Ltd. could historically respond with a nullum arbitrium plea, contending that while arbitration sessions occurred, the arbitrator's deliberations were inconclusive, or that a final, written award was never properly issued or delivered to both parties. This defense would mean Beta Ltd. is arguing that no enforceable "decision" was ever reached by the arbitrator.

• Suppose two partners in a small business decide to dissolve their partnership and agree to use an arbitrator to divide their assets. One partner later demands a specific share of the company's equipment, claiming it was awarded to them by the arbitrator. The other partner might historically invoke nullum arbitrium, asserting that the arbitrator's process was incomplete, or that the final asset distribution was never formally documented and presented as a binding award. By using this defense, the partner would be stating that there was "no decision" from the arbitrator that legally compelled them to hand over the equipment.